County to reduce tax rate
Charlotte County commissioners Tuesday agreed to reduce the countywide property tax rate by 0.28 mills as a "gesture" to taxpayers that further cuts can be expected by September.
The millage reduction was the commission's initial response to a 50 percent increase in the county's taxable value, which would generate $42 million more in anticipated revenues if tax rates remained the same.
The reductions authorized Tuesday slashed 0.25 mills from the general fund and 0.03 from the public health levies, lowering the countywide millage rate from 5.3709 to 4.0909.
Commissioners also trimmed the public safety unit millage rate -- assessed to all county taxpayers but Punta Gorda landowners -- by 0.35 from 1.8524 mills to 1.5024.
And there is plenty of momentum to do so.
"There is not even a remote possibility that the board will stay with
the same millage," Commissioner Adam Cummings said. "I'm just wondering
if a gesture to that end may not be appropriate."
Collectively, the cuts would reduce the base 2007 property tax bill for
the owner of a home with a $160,000 taxable value, and a $25,000 Save
Our Homes exemption, by $64 from the 2006 base property tax bill.
The "$64 they are getting back doesn't seem much," Commission Chairman
Tom Moore said. "Maybe it's more cynical than substance, but it does
set the stage" for further millage rate cuts.
Commissioners are required to set the millage rate by mid-July for the
upcoming fiscal year's budget, which goes into effect on Oct. 1.
While they cannot increase the rates set Tuesday, they can cut the
millage further as budget deliberations proceed until the final hearing
on Sept. 28.
Commissioners were presented a "series of reduction scenarios" that
included decreases of 0.25, 0.5 and 0.75 in the general fund millage,
as well as a "rollback reduction" that fixed the county's forecast
property tax revenues at 2006 levels.
All four scenarios included the 0.03 decrease in the public health and 0.35 decline in the public safety unit levies.
County Budget Director Ray Sandrock said if commissioners adopted a
rollback reduction, it would "require cutting the budget to get back to
a zero budget."
Sandrock said while the county's projected income has increased by $42
million -- $34 million for the general fund and $8 million for the
capital improvement fund -- projected expenditures have increased by
$18 million in general fund costs alone.
A 0.25 general fund millage reduction would save taxpayers $64 next year; a 0.5 cut, $100; and a 0.75 cut, about $133.
Commissioners Matt DeBoer and Tom D'Aprile unsuccessfully proposed
cutting the general fund millage by 0.5, but were on the losing end of
a 3-2 vote.
DeBoer said he favors reducing the general fund millage by 0.75 and even going to a rollback reduction.
DeBoer said voters several years ago approved a referendum that states
the county can increase revenues only through inflation, growth-related
fees, in response to state and federal mandates and to finance new
facilities.
He said that referendum is a pact between constituents and
commissioners, noting taxpayers have upheld their side of the deal by
approving three sales-tax increases to finance projects.
This hike in revenues does not meet that criteria, DeBoer said, because it is financed by property tax revenues.
No matter how low the millage rate is decreased, revenues derived from
increases in valuation represent a revenue boost that is "a pretty
healthy increase for this organization," he said.
"We're talking about building up a savings account and everyone gets
what they want for Christmas," DeBoer said, noting he has not had the
time to review proposed increases in the budget.
"I cannot approve these increases in good conscience," he said.
Commissioner Sara Devos was the lone dissenter in the 4-1 vote to lower
the countywide millage rate by 0.28 and the public safety unit rate by
0.35.
"Leave all things as they are," she said. "Consider all the unknowns
until we have the total picture. If we reduce the millage -- and
there's probably a good chance we will do that -- we need to be
cognizant of the fact that valuations could go flat. If we decrease it
too much this year and have to raise it again next year."
DeBoer said if circumstances dictate that millage rates must be
increased next year because they were lowered this year, taxpayers
would understand.
Whatever, D'Aprile said, "Come September, the millage rate is going down."
"I'm glad it's not September," Moore said, "but it will be here pretty soon."
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